On the first anniversary of the Inflation Reduction Act (IRA), President Joe Biden celebrated the legislative effort aimed at combating the climate crisis. The president lauded the bill, stating that it has already generated 170,000 clean energy jobs and is projected to create around 1.5 million jobs over the next decade. Notably, the legislation has also facilitated the relocation of critical components production from China to the United States.
During a White House event to mark the occasion, President Biden stood alongside individuals representing various sectors, including union workers, small business owners, and consumers, who have benefited from the law’s provisions. He emphasized that Democrats played a pivotal role in delivering the legislation, calling out Republicans who had uniformly voted against it but are now seeking credit for its achievements.
The IRA’s impact has been significant. According to a Bank of America analyst report, over 270 new clean energy projects have been announced since the legislation’s passage, with investments totaling approximately $132 billion. Around half of these investments are directed towards electric vehicles and batteries, while the remaining funds are allocated to renewable energy sources such as solar, wind, and nuclear power. These investments are predicted to generate over 86,000 jobs, including 50,000 related to electric vehicles.
Moody’s, a credit rating agency, has noted that the legislation is likely contributing to the growth of gross domestic product (GDP), productivity, and innovation. However, its significant impact is projected to become more apparent in 2024 and 2025.
While the Inflation Reduction Act has helped address concerns over soaring prices for Democrats ahead of the 2022 congressional elections, economists suggest that most of the recent decrease in inflation rates is not solely attributed to the law. Despite this, a Reuters report indicates that a significant portion of Americans who voted for Biden in 2020 believe that the economy has performed poorly under his leadership. Approximately half of these respondents stated that they have little to no knowledge of Biden’s major policy initiatives aimed at reducing inflation and increasing infrastructure spending.